'Cheap' iPhone tipped to be quite expensive

Apple is expected to introduce a second iPhone version this year, a plastic design with a lower price tag, aimed at emerging markets. But there’s a problem.

According to Pegatron’s chairman, T.H. Tung, the cheap iPhone won’t, ahem, come cheap. The model should be available in a range of colours, made possible by the use of a plastic shell.

However, Tung said the new iPhone should not be called “cheap” as such a description would ruin the phone’s image. It is not a cheap low-end toy, it is a feature packed smartphone, MacRumors reports.

Tung also pointed out that the “price is still high” and since the plastic iPhone is tipped to sell for $350 to $400 unsubsidised, he might be referring to this rumoured price range. This could be pretty bad news for Apple fans who were hoping to spend a little less on their next upgrade.

Even at $400 the “cheap” iPhone would cost more than a Nexus 4, which is still one of the best Android devices out there.

It’s quite a conundrum for Apple. A truly cheap, plasticky iPhone would dilute the brand, while a pricey design would be rather pointless next to the aluminium clad iPhone 5/5S.